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Speculating on companies that have recently changed their ratings can be a good short-term strategy. Normally, companies will see increases in their prices after these changes. I assessed companies which were upgraded on September 13, and I chose the top three companies with a significant change on ratings. Here is a look at the three stocks:

1. Zumiez Inc. (NASDAQ:ZUMZ) operates as a specialty retailer of action sports related apparel, footwear, equipment, and accessories. Its apparel products include tops, bottoms, outerwear, caps, bags and backpacks, belts, jewelry, and sunglasses; and footwear products comprise action sports related athletic shoes and sandals. The company also offers various equipment products or hardgoods, such as skateboards, snowboards, and boots and bindings; and miscellaneous novelties. Its stores cater to young men and women between the ages of 12 and 24 focusing on sport lifestyle centered on activities that comprise skateboarding, surfing, snowboarding, bicycle motocross, and motocross. Competitor: Hot Topic Inc. (NASDAQ:HOTT)

(click to enlarge)

- The MACD marks a change of upward trend. RSI is in a good position.

New Rating

DA Davidson upgraded Zumiez, Inc. from Neutral to Buy with a price target of $36.00.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on September 4 with the following highlights:

Revenue$135.06 Million
Net Income$2.08 Million
Cash$12.61 Million

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20123,526,287927,5693.801644
8/15/20123,186,711433,8877.344564
7/31/20123,122,848353,9468.822950

My Analysis

The stock has a $32.22 price target from the Point and Figure chart. The short interest shows an increase. The stock is trading at a forward P/E of 23.00.The MACD marks an upward trend and for this reason, I would purchase shares with a target price of $32.22.

2. Dover Corporation (NYSE:DOV) manufactures and sells a range of specialized products and components, and provides related services and consumables. The company operates in four segments: Communication Technologies, Energy, Engineered Systems, and Printing & Identification. The Communication Technologies segment engages in the design and manufacture of products and components in the communications, life sciences, aerospace/industrial, defense, and telecommunication/other markets. The Energy segment provides engineered solutions for the extraction and handling of oil and gas in the drilling, production, and downstream markets. Competitor:Ingersoll-Rand Plc (NYSE:IR)

(click to enlarge)

- The MACD marks a change of upward trend. The stock is in a bullish channel. RSI marks overbought.

New Rating

Barclays upgraded Dover Corp. from Equalweight to Overweight with a price target of $72.00 (from $66.00).

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on July 17 with the following highlights:

Revenue$2.15 Billion
Net Income$214.10 Million
Cash$785.96 Million

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20123,951,2721,166,6733.386786
8/15/20123,557,4211,062,3333.348687
7/31/20123,257,8961,986,8731.639710

My analysis

The stock has a $62.5 price target from the Point and Figure chart. There have been two insider buy transactions this year. The stock is trading at a forward P/E of 13.35. I would buy a small speculative position because the stock is bullish and the recent "upgrade" recommendation will help overcome the $62.5 target price.

3. TOTAL S.A. (NYSE:TOT) together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates in three segments: Upstream, Downstream, and Chemicals. The Upstream segment engages in the exploration, development, and production of oil and gas, liquefied natural gas, and electricity; and shipping and trading liquefied petroleum gas (NYSE:LPG), as well as power generation from renewable energies, and coal production, trading, and marketing. It had combined proved reserves of 11,423 million barrels of oil equivalent of oil and gas. The Downstream segment is involved in refining, marketing, trading, and shipping crude oil and petroleum products. Competitor: Exxon Mobil Corporation (NYSE:XOM)

(click to enlarge)

- The MACD marks an upward trend. The stock is in a bullish channel. RSI marks overbought.

New Rating

Citi upgraded TOTAL S.A. from Sell to Neutral.

Consensus Recommendation

(SOURCE)

Financials

The company reported the 1st-half financial results on July 27 with the following highlights:

Revenue€100.30 Billion
Net Income€5.28 Billion
Cash€14.99 Billion

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20124,983,5172,548,0921.955784
8/15/20124,181,7892,615,0301.599136
7/31/20127,249,6225,181,328

1.399182

My analysis

Short interest has decreased in a month. There have been two insider buy transactions in September. The stock is trading at a forward P/E of 8.73. I would buy a small speculative position because the stock is bullish and the recent "upgrade" recommendation will help overcome the $57.06 (52-week high).

*Chart data sourced from stockcharts, all other data sourced from Nasdaq.com and yahoo.com as well as the webs of the previously mentioned companies.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Investors buy and/or sell at their own risk. I declare that I may day-trade any stock at any time mentioned in this article. For me "long" is until I sell and few tell you that. I do not "short" stocks and few tell you that too. I also get paid one penny per view from SA and other than being published by SA and my own private stock account, I have zero connection to Wall Street and few tell you that too.

Source: Top 3 Stock Upgrades On September 13